Markets extremely volatile, trade with caution

Indian markets are currently trading on a volatile note after having recovered from the day’s low. All sectoral indices are trading in red with Capital goods, Power and Oil and Gas taking the worst hit.

Asian markets extended their losses on concerns that economic growth in China and Japan is slowing and the worsening European debt crisis. European markets declined as surging borrowing costs in Italy, France and Spain deepened concerns that Euro zone leaders are struggling to contain the debt crisis. 

Back home, BHEL is leading the losers pack down 6.76 per cent to Rs 289.55. Jaiprakash Asso and L&T are also down 5.63 and 4.58 per cent respectively. Other stocks like Hero Motocorp, Sun Pharma, Hindalco, RIL etc are down more than 2 per cent. Mahindra and Mahindra, Cipla and Jindal steel continue trading strong in the green zone and are holding their morning gains. Other stocks like ITC, NTPC, Bajaj Auto, Tata Steel etc are marginally up. 

Spice Jet is down 6.68 per cent to Rs 20.25 after PSU Oil marketing companys hiked prices of Aviation Turbine Fuel (ATF) by 2 per cent per kilo litre. However Jet Airways is trading flat after giving up its morning losses while Kingfisher Airline continues to gains and is up 6 per cent.

Three shares namely Bharti Airtel (up 0.64 per cent to Rs 404), Idea (up 4.23 per cent to Rs 98.55), and Power Finance Corporation (up 2.27 per cent to Rs 164.20) surge on news of their inclusion in the Morgan Stanley Capital International Index (MSCI).

The market breadth, indicating the overall health of the market, is very weak. On BSE, 2053 shares fell and 575 shares rose. A total of 99 shares remained unchanged.

In conclusion, we expect the markets to remain volatile for the rest of the day and advise readers to play with caution.